HDGE’s advantages do not come cheap. “Shorting stocks is expensive. HDGE’s expense ratio is 1.65 percent of assets, and its total expenses add up to 3.29 percent of the amount an investor puts into it, charged annually. The fees can add up because HDGE has to pay interest and dividends when it borrows stocks to short,” reports Eric Balchunas for Bloomberg.
HDGE’s largest short is almost 4.5% of the ETF’s weight directed toward Dow component International Business Machines (NYSE: IBM). HDGE is also short two well-known ETFs: The SPDR S&P Oil & Gas Exploration & Production ETF (NYSEArca: XOP) and the Market Vectors Oil Service ETF (NYSEArca: OIH). Those ETFs combine for 3.1% of HDGE’s weight. [Netflix Slide Could be Bad for These ETFs]
AdvisorShares Ranger Equity Bear ETF
